Re: [tax] Re: [ubl] Comments from Tax XML on Invoice and Small BusinessSubset submission - Tax Category

[Tim McGrath <tmcgrath@portcomm.com.au>]

I agree with you analysis and I suspect we need to have ItemTax Category 
as the intersection between an Item and Tax Category.

UBL sees Tax Scheme as the higher level description such as "VAT in the 
UK" "GST in Australia" "California State Tax".  So using your example, a 
Tax Scheme might be "Canadian GST" that results in a "Non-taxable" Tax 
Category for the Item Tax Category "Childrens Clothing".

We will add this to our Issues list for inclusion in the model review.

john.glaubitz@vertexinc.com wrote:

>
>
>Sorry as well for the late response to this question.  There has been some
>discussion regarding this on the TaxXML list, but I don't believe the
>comments made it back to you, so I'll try to combine some thoughts.
>
>First of all, you are correct in your interpretation of the way that TaxXML
>views what it terms a Tax Category.  It could be described as a
>categorization of the goods and/or services involved in the transaction.
>In UBL's Tax Category, the term may be described as a categorization of the
>tax result that was determined on the goods and/or services involved in the
>transaction.  A subtle but critical difference.  I suspect that both may
>need to be included since we want to make sure there's a place to put any
>and all relevant information.  This is as much as anything because the
>(tax) rules for this will vary from jurisdiction to jurisdiction and from
>tax to tax.
>
>Also, since the determination of tax may need to occur at various points
>along the supply chain, not only to include on the invoice for example, but
>to verify the tax on the invoice by the customer, any relevant details that
>were used to determine that tax should included.  however, the category of
>the goods and/or services involved may not always be available or required.
>
>I suppose the next question is how Tax Scheme is defined since the "scheme"
>may depend on the goods/services category involved resulting in a
>particular tax category and rate where applicable.  So an example may be
>the Canadian Childrens Clothing GST Tax Scheme that results in a
>Non-taxable Tax Category.
>
>Does this sound like a correct interpretation of Tax Scheme?
>
>- John
>
>
>
>                                                                                                                                        
>                      Tim McGrath                                                                                                       
>                      <tmcgrath@portcom        To:       swebb@gefeg.com                                                                
>                      m.com.au>                cc:       ubl@lists.oasis-open.org, tax@lists.oasis-open.org                             
>                                               Subject:  [tax] Re: [ubl] Comments from Tax XML on Invoice and Small Business Subset     
>                      08/29/2005 03:20          submission - Tax Category                                                               
>                      AM                                                                                                                
>                                                                                                                                        
>                                                                                                                                        
>
>
>
>
>Sorry it has taken me a while to get around to this.  Somehow it just kept
>slipping through my intray!
>
>I can see from the submission that TaxXML define item tax category as:
>"A categorization or classification of items that may be used to identify
>items from the perspective of determining tax liability. For example, items
>categorized as clothing may be subject to a standard tax rate in a
>particular jurisdiction, however a sub category of clothing, such as
>children’s clothing may be nontaxable or zero-rated, while another sub
>category such as luxury clothing, for example furs, could have a surcharge
>or higher tax rate."
>
>UBL has used Tax Category as :
>"information directly relating to a specific tax category". For example,
>"ZeroRatedGoods" "NotTaxable" "Standard Rate".
>
>With UBL it is, in fact, the Tax Category the is used for the actual
>charges.
>
>In other words UBL sees Tax Category as a subset of a Tax, whereas i think
>TaxXML see it as a subset of an Item (or classification of an Item).
>
>So where UBL may have a Tax Category value of "ZeroRatedGoods", TaxXML
>would expect to see values like "Children's Clothing".
>
>Is that correct?
>
>Is it that UBL assumes the taxability assessment has been done and TaxXML
>simple provides the raw information?
>
>Clearly there is a relationship between these two and we should decide how
>to model them.
>
>
>Sylvia Webb wrote:
>      3) For the UBL Invoice, they would like further information on our
>      definition of Tax Category and Item Tax Category.  After studying
>      Stephen Greens questions, and the UBL issues list, it does not appear
>      that their definition for these items is the same as UBL's.  Upon
>      receipt of this additional information, they will answer Stephen's
>      questions and submit additional comments.
>
>--
>regards
>tim mcgrath
>phone: +618 93352228
>postal: po box 1289   fremantle    western australia 6160
>
>DOCUMENT ENGINEERING: Analyzing and Designing Documents for Business
>Informatics and Web Services
>http://mitpress.mit.edu/catalog/item/default.asp?sid=632C40AB-4E94-4930-A94E-22FF8CA5641F&ttype=2&tid=10476
>
>  
>

-- 
regards
tim mcgrath
phone: +618 93352228  
postal: po box 1289   fremantle    western australia 6160

DOCUMENT ENGINEERING: Analyzing and Designing Documents for Business Informatics and Web Services
http://mitpress.mit.edu/catalog/item/default.asp?sid=632C40AB-4E94-4930-A94E-22FF8CA5641F&ttype=2&tid=10476